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White House Offers First Budget Compromise As Negotiations With GOP Begin

White House Budget Gop

First Posted: 03/03/11 04:24 PM ET Updated: 05/25/11 07:35 PM ET

WASHINGTON -- Minutes before lawmakers and Vice President Joseph Biden met to discuss a funding measure to keep the government operational through the fiscal year, the Obama administration offered the first formal compromise.

Briefing reporters at the White House while negotiators made their way to the VP's office on the Hill, top administration officials said they had agreed to cut another $6 billion from the measure (and would be willing to go even further) in an attempt to bridge the party divide.

We have made it "clear that we can meet them halfway," said top economic adviser Gene Sperling at an off-camera briefing for reporters, "[W]e have made it clear we are committed to doing that and we are willing to cut further if we can find common ground on the budget with reducing spending in the right way while protecting our investments in education, innovation and research."

With respect to what programs would be on the chopping block, Sperling would only say, "stay tuned." Whether Republicans would agree with the administration's math also remained a mystery.

While Sperling and Communications Director Dan Pfeiffer insisted the $6 billion in additional cuts would be the equivalent of meeting Republicans halfway, top GOP officials argued otherwise.

The continuing resolution House Republicans passed in February included $100 billion in cuts when compared to the FY 2011 White House budget proposal -- a proposal that ultimately didn't pass. The White House insists its budget suggestion should be judged on that frame.

As such, the president and Senate Democrats have already offered a continuing resolution that comes in at roughly $40 billion below those levels. Adding on the $4 billion in reductions lawmakers passed in order to keep the government running for two weeks following March 4th (when funds were initially set to run out) and the $6 billion in cuts Sperling and Pfeiffer unveiled on Thursday equals $50 billion total -- exactly half of the $100 billion passed by Republicans.

As of several days ago, this math might have worked with the GOP. But as negotiations have entered a new stage, so to has the context. Republicans now insist negotiations instead should be based off current spending levels, not those in Obama's 2011 budget proposal. With that as a baseline, their CR offers roughly $60 billion in cuts. The president, in turn, offers just $10 billion (the $4 billion passed already plus the $6 billion suggested on Thursday).

"I understand that people maybe want to change the math, now," said Pfeiffer, arguing that it would be irresponsible for the media to base the current proposals off anything other than FY 2011 suggestions. "What is clear is no matter what math they use, Republicans won't get everything they want and Democrats won't get everything they want."

One thing Republicans might not get are the host of riders that attached to their continuing resolution, including language that would cut off, among other things, funds for Planned Parenthood.

"We think the focus should be on how to cut spending in a way that is smart for the economy," said Sperling, "and that no one should get that core mission derailed by focusing on any political or ideological [cause]."

On the Hill, the talk was even tougher. Several female Democrats took to the floor on Thursday to denounce the Republican proposal as demonstrably unfair towards women. Aides, meanwhile, insisted no deal would be reached if House GOP leadership didn't drop some of the more draconian cuts and riders.

"Our side believes that any measure that keeps the government running should be clean of extraneous legislating," said on top Democratic aide.

All of which portends difficult negotiations in the weeks ahead. Government funds currently run out on March 18 and the administration has vehemently insisted that it does not want another two-week stopgap to keep talks ongoing

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WASHINGTON -- Minutes before lawmakers and Vice President Joseph Biden met to discuss a funding measure to keep the government operational through the fiscal year, the Obama administration offered the...
WASHINGTON -- Minutes before lawmakers and Vice President Joseph Biden met to discuss a funding measure to keep the government operational through the fiscal year, the Obama administration offered the...
 
 
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12:12 PM on 03/16/2011
America’s problem is that the rich don’t have enough money.
02:47 PM on 03/04/2011
It’s over! Barack has done it again! Again, he has checkmated the Republican economic saboteurs in the court of public opinion! By seeming to continually compromise with them, down from his proposed budget for this year (FY 2011). He will seem to any REASONABLE observer to be completely REASONABLE himself.

First, he will insist on using FY 2011 as his base (the EXACT same one they used in their “A Pledge to America” and in their latest CR, from which they promised $100bn in cuts). He, then, REASONABLY proposes to meet them half way, and then some ($40+4+6.5=50.5bn, i.e. $0.5bn more). For Pete’s sake, how much more REASONABLE can you be than that (even though it’s actually $10.5bn, NOT $61bn- and not a penny more!- in cuts)!

Any other technical niceties will be lost on the public, with the aid of White House spin, and to the dismay of the Republicans and the press. The Biden Conference will then only be left to decide WHICH low hanging fruit to get the cuts from. (And, the Tea Partiers, by principle, are not supposed to care)! The resulting compromise bill sure ain’t gonna include ANY of the Republicans’ culture war budget riders, and he will INSIST that those publically-hated oil subsidies be converted into his Investments before he signs it!

Now, how completely brilliant is that!
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PoliSci2008
Independent
02:34 PM on 03/04/2011
(sounds of trumpets) Tat ta-ta-ta Taa, Tat ta-ta-ta Taa.

(announcement) The President of the Untied States of America, Bargain Insane Obama.

(entrance) Taa tat-ta-tat, tat,ta,ta,ta,tat, da,da
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HUFFPOST SUPER USER
Hwrd Sprague
01:40 PM on 03/04/2011
What a B.S story this is. Obama &/or the Dems in Congress have not even produced a budget so no legitimate compromise can be tendered w/o a budget proposal; of course, Pelosi's Congress went w/o a budget for all of 2010 so why am I not surprised by the Dems lack of a budget now
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HUFFPOST SUPER USER
Gus DiZerega
writer
01:03 PM on 03/04/2011
Obama is a deep disappointment to a great many of us who elected him.

Leadership? Nope.

Courage? Nope.

Standing for principles? Nope.

Still better than the Republicans? Yep.
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PoliSci2008
Independent
02:21 PM on 03/04/2011
Gus I'm on the bus with you on that! What are we to do? Personally, I say abandon the US Obama ship and let us elect a primary challenger, but the DNC are too spineless to make that bold decision.

The GOP made the bold move when they elected Reagan over that clumsy Ford.

F & F
This user has chosen to opt out of the Badges program
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12:48 PM on 03/04/2011
It's an outrage that Obama and the Dems are offering up $50 Billion in budgetary cuts when Mark Zandy has said the Republican cuts will lose 700,000-1,000,000 jobs, (at a time when a good month is a net gain of 192,000) and at a cost of a 2% loss in GDP, at a time when GDP growth is at 2.7%.

What's the thinking here? Are they conspiring with the R's to set back the nascent recovery? Do they think that an economic backslide is going to get independents in 2012?

The deck is stacked in their favor; R's have already said they don't want to shutdown the government. And they won't, knowing how that worked against them in 1995. This is when the Dems ought to call their bluff and demand the kinds of cuts that liberal economic policy dictates: cut some of those oil subsidies we are paying to the tune of $40 billion a year. Eliminate corporate tax exemptions on those 2/3 of all corporations who pay no taxes.

This is like agreeing to cut back on food, heating, and water- turn down the heat to 60 degrees, take fewer showers- never mind the peeling paint job, or fix the leaky roof- can't afford it! But, heck, keep making those thousands of dollars in donations to your rich relatives (they might give you a nice birthday gift in return!)

What in the name of God is wrong with those Democrats????????

They make my head explode!!!!
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PoliSci2008
Independent
02:26 PM on 03/04/2011
Did you say cut some of those oil subsidies? Just yesterday, they approved a budget for an oil subsidy.

I just hope the Obama administration are reading these comments, and get it together ASAP!
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02:37 PM on 03/04/2011
Hmmm. I read that the R's voted it down. I'll keep an eye out for anything contrary, but I'm pretty sure, as of yesterday, it was a 'no' on oil subsidies....
nothingchanges
too soon old, too late smart
12:37 PM on 03/04/2011
The only "cut" not on the table, is the one that matters the most.

Tax "cuts" for the rich.
HUFFPOST PUNDIT
Leviathan21
12:20 PM on 03/04/2011
Please do not let this guy be my hostage negotiator if I am ever kidnapped.

He'll be like, "Yes, of course, we'll deliver all the money that you want. And, afterwards, if you feel like it, you can release the hostage. So, are we cool?"
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PoliSci2008
Independent
02:28 PM on 03/04/2011
LOL! Yeah, he'll also allow your ears to be cut off in the process!!!
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WADRGFY
Trending anarchic
12:14 PM on 03/04/2011
Obama genuflects again - it's what he's best at. It seems he's willing to bargain on just about everything.

His campaign rallying cry should have read:

"Caving so fast you won't believe it"

The GOP couldn't have done better if they'd won in '04.
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PoliSci2008
Independent
02:29 PM on 03/04/2011
Shessh! His name s/b President Bargain Insane Obama!!!
12:13 PM on 03/04/2011
Unreal. Only in the US could one say that 50 or 100 billion in cuts when we have regularly, reoccurring annual budget deficits of 1 trillion, is good progress. Think about it that is 10% or less of one year's debt.

It is an inch, maybe only a couple cm in the right direction.
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Aroon
12:07 PM on 03/04/2011
Offers compromises even before negotiations begin?
12:06 PM on 03/04/2011
Can someone explain to me at what point in history did "capitulate" become "compromise"?

All this newspeak is getting disconcerting.

Robert Healy
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juzcuz
12:04 PM on 03/04/2011
Negotiations just beginning and Obama has aleady started throwing in the towel? Just one time, I'd like to see our President stand firm with his convictions... but he's still so determined to compromise with the naysaying Thugs. Just don't get it. I know Obama is 'too nice' in most respects - just one time I'd love to see him get dirty... with 'those people's same kind of terms.
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pesfb
il cane pazzo
11:59 AM on 03/04/2011
One can argue the merits of compromise or not, the saddest aspect of all is Obama's acceptance of the GOP framing on the issue of cuts that they should be borne by the middle class, working class and the poor.
Paulo1
Thanks for reading, (even if you disagree)
11:44 AM on 03/04/2011
Compromise, compromise. Its all he ever does. He compromises his way into giving the Republicans what they want every time.

Spineless. Totally spineless.